Chainalysis Report: Sub-Saharan Africa Becomes the Fastest Growing Region for Cryptocurrency Globally

The cryptocurrency market in Sub-Saharan Africa has surpassed $100 billion, with South Africa leading the way.

Written by: Chainalysis
Compiled by: Luffy, Foresight News

The data research organization Chainalysis has released the latest edition of its Global Cryptocurrency Adoption Report. The report highlights that the cryptocurrency economy in Sub-Saharan Africa has grown by 13.4% year-on-year to $101 billion, marking the fastest growth rate globally. South Africa and Nigeria are the two core markets, with a surge in demand for stablecoins and the highest proportion of individuals using self-custody wallets worldwide. The local cryptocurrency adoption is primarily driven by real financial needs such as cross-border remittances and everyday payments, and the future market direction largely depends on regulatory clarity. Below is the English translation of the Sub-Saharan Africa section of the report:

Although Sub-Saharan Africa has the smallest cryptocurrency economy globally, it is also the fastest growing region. During the statistical period from July 1, 2025, to June 30, 2026, the cryptocurrency market in this region is expected to grow by 13.4%, reaching $101 billion, with South Africa being the main driver of this growth.

A very practical reason behind the local cryptocurrency adoption is that many individuals and businesses still struggle to access affordable and reliable financial services. For ordinary people, cryptocurrencies provide an alternative solution for managing funds and cross-border transfers; for businesses, cryptocurrencies enable faster and cheaper cross-border payments and settlements.

In this region, the appeal of cryptocurrencies lies not in creating new financial products or speculative investment channels, but in addressing real-life financial pain points.

As Mercy Emmanuel, the head of stablecoins and blockchain business at Nigerian fintech company Flutterwave, stated: "For the African market, commercially valuable innovations should simplify existing financial activities rather than deliberately complicate business processes for the sake of using blockchain."

South Africa and Nigeria Dominate the Regional Market

South Africa and Nigeria dominate the Sub-Saharan African cryptocurrency market, together accounting for more than three-quarters of the region's total cryptocurrency transaction volume.

South Africa is the largest cryptocurrency economy in Sub-Saharan Africa

However, the development paths of the two countries have clearly diverged. During the reporting period, South Africa's cryptocurrency economy reached $39.3 billion, a year-on-year increase of 52%, rising against the backdrop of a global bear market. The growth covers all statistical tracks, with the main drivers being cross-border P2P stablecoin transfers and various cryptocurrency service-related capital flows.

Nigeria's cryptocurrency market size is close to that of South Africa, reaching $38.1 billion, but transaction volume has declined by 3% year-on-year. The growth in centralized exchanges (CEX) and cryptocurrency service sectors has been offset by a 45% drop in decentralized exchange (DEX) trading volume and a 17% decline in cross-border P2P transaction volume. Meanwhile, Nigeria ranks third globally in Chainalysis's grassroots cryptocurrency adoption index.

South Africa and Nigeria account for three-quarters of the total cryptocurrency economy in Sub-Saharan Africa

Looking at other countries, the activity levels of CEX and DEX trading significantly impact growth curves across the region. Ghana's cryptocurrency market size grew by 80% to $5.1 billion, with both CEX and DEX trading increasing; Senegal's cryptocurrency transaction volume surged by 215% to $2.3 billion, with growth coming entirely from centralized exchanges. In contrast, Ethiopia's cryptocurrency market size declined by 8% to $3.7 billion, primarily due to a contraction in DEX trading.

These differentiated performances indicate that the pace of cryptocurrency adoption within the region is not uniform. Smaller markets have significant growth potential and can scale quickly, but they also experience greater volatility, making them more susceptible to market conditions and regulatory changes. Regulation and market conditions can both accelerate adoption and directly interrupt growth momentum.

30% of Cryptocurrency Funds Flow into Personal Wallets

Research shows that personal wallets account for a very high proportion of the cryptocurrency market in Sub-Saharan Africa, reflecting the region's unique adoption model: individuals are the core holders and transferors of cryptocurrency assets.

During the statistical period, funds received by personal wallets accounted for 32.3% of the total amount received in the region, the highest proportion globally. This indicates that local users choose cryptocurrencies largely to manage their funds independently rather than relying on custodial intermediaries like exchanges.

Cross-border P2P transfers are the main source of these funds, accounting for 70.9% of the amount received by personal wallets; domestic P2P transactions account for 18.5%; and transfers from cryptocurrency service platforms to personal wallets account for 10.7%.

One-third of cryptocurrency funds in Sub-Saharan Africa flow into personal self-custody wallets

Insufficient custodial service supply and regulatory uncertainty are significant reasons for users' preference for self-custody wallets. For example, in Nigeria: from 2021 to 2023, the Central Bank of Nigeria prohibited banks from providing services to cryptocurrency exchanges, and the country has since had tax disputes with leading international cryptocurrency platforms. Such regulatory changes have led users to prefer self-custody to avoid risks associated with future policy changes and market disruptions.

Regional Stablecoin Transaction Volume Increases Sixfold, Bitcoin Fund Inflows Shrink by 60%

Stablecoins are rapidly defining the cryptocurrency market landscape in Sub-Saharan Africa. From 2022 to 2026, the amount received through P2P channels for stablecoins increased sixfold, from $2.3 billion to $14.6 billion; during the same period, the amount received for Bitcoin dropped by 60%, from $36 billion to $14.6 billion.

Stablecoin transaction volume increased sixfold, while Bitcoin dropped by 60%

This change highlights the practical value of stablecoins: local individuals and businesses can use stablecoins to hold the value of foreign currencies like the US dollar without needing to open foreign currency bank accounts. In Sub-Saharan Africa, where local currencies are highly volatile, access to foreign exchange is limited, and cross-border transfers are expensive and slow, stablecoins can be used for payments, value preservation, and cross-regional fund transfers.

The application scenarios for stablecoins have extended beyond trading, garnering widespread attention. Philip Kwaw Sebuabe, head of the virtual assets department at the Bank of Ghana, stated: "The appeal of stablecoins goes beyond trading; cross-border payments, remittance settlements, and the preservation of foreign currency assets are core uses."

Gillian Darko, strategic vice president of stablecoin payment infrastructure provider Yellowcard.io, shares the same view, believing that stablecoins represent the biggest opportunity in the region over the next year, as they can meet the market's demand for reliable payment systems, connecting payment, savings, and investment pathways.

Cross-border remittances most intuitively reflect the value of stablecoins: the amount of stablecoin remittances in the region doubled year-on-year, from $235 million to $492 million; Bitcoin remittance amounts remained largely unchanged. The number of stablecoin cross-border transfers increased nearly fivefold, indicating a genuine increase in usage demand, not just a paper increase due to rising asset prices.

Stablecoins have replaced Bitcoin as the mainstream cryptocurrency for remittances

This reflects the strong demand for cross-border financial connectivity in Africa. Mercy Emmanuel from Flutterwave mentioned: "Africa has a strong demand for international financial connectivity, but payment pathways are fragmented by different currencies, markets, and financial institutions. Stablecoins have the opportunity to bridge the value flows between these isolated systems."

In this context, local fiat stablecoins are beginning to gain attention. Rob Downes, head of digital assets at pan-African bank Absa CIB, pointed out that local fiat stablecoins are emerging, with South Africa, Ghana, Kenya, and Tanzania all piloting initiatives. For instance, the Bank of Ghana is studying a stablecoin backed by the Ghanaian cedi: the stablecoin will handle settlements, and the recipient can ultimately receive Ghanaian cedis through a bank account or mobile wallet without needing to hold cryptocurrency assets themselves.

Philip Kwaw Sebuabe also mentioned another significant advantage of stablecoins: they are not subject to traditional bank operating hours. Bank transfers are often constrained by weekdays, weekends, and holidays, while stablecoin transactions can settle 24/7, which is particularly important for international trade, cross-border remittances, and financial markets.

These trends indicate that stablecoins serve two major functions: providing exposure to foreign currencies like the US dollar while optimizing the regional payment system. The large-scale implementation of stablecoins largely depends on regulatory clarity. Ghana and Kenya have already introduced regulations related to stablecoins last year, establishing rules for the rapidly expanding stablecoin market to support broader adoption.

Expansion of Internal Cryptocurrency Payment Channels in Africa, Businesses Seeking Low-Cost Cross-Border Settlements

Research has observed rapid growth in cryptocurrency payments aimed at businesses within Africa, with cryptocurrencies playing an increasingly important role in cross-border transfers between businesses in the region. The statistical scope includes payments from consumers to merchants and transfers between businesses.

This growth stems from long-standing pain points in traditional cross-border commercial payments in Africa: only a small portion of internal cross-border payments in Africa are settled locally, leading to high costs and regulatory friction. In this context, cryptocurrency payment channels connecting African merchants and consumers have become an attractive alternative.

Data shows that during the statistical period, the number of active cryptocurrency payment channels in the region nearly doubled, increasing from 80 to 152, with 95 channels having funds flowing in both directions; the total transaction volume grew more than twofold, from $3.43 million to $11.65 million. The average transaction size per channel increased from $429,000 to $766,000, indicating broader capital connectivity and deepening transaction activity in the region.

The number of internal cross-border commercial payment channels in Sub-Saharan Africa has nearly doubled

This trend signifies not only an increase in the flow of cryptocurrency funds between African markets but also that cryptocurrency payment channels are serving merchants and consumers where traditional financial infrastructure coverage is insufficient.

Although there is strong demand for such cryptocurrency payment channels in the region, whether financial institutions and mainstream payment service providers can accept cryptocurrencies will determine whether this sector can continue to scale. Gillian Darko emphasized the role of banks in domestic transfers, international payments, and remittances in Africa; for stablecoin payments to become widespread, they must integrate with the existing banking system, allowing on-chain transactions to connect with broader financial infrastructure.

North America is the Main Source of Cryptocurrency Remittances Flowing to Sub-Saharan Africa

Apart from corporate payments, the importance of crypto remittances in Sub-Saharan Africa continues to rise. Traditional remittance fees are high, making cryptocurrency an attractive low-cost alternative.

Remittances are a significant source of income for many countries in the region, with a high percentage of GDP coming from remittances in countries like Gambia and Lesotho. By 2025, Sub-Saharan Africa is expected to receive a large volume of cross-border remittances. However, the cost of sending money to the region has remained high for a long time: according to World Bank data, the average fee for sending $200 is among the highest globally. For recipients, even a slight decrease in fees can lead to tangible benefits, and crypto remittances play a role in this scenario by lowering costs, breaking down barriers, and speeding up transfer times.

Research shows that developed countries are the main source of crypto remittances flowing into Sub-Saharan Africa, with a total of $888 million during the statistical period, a year-on-year increase of 36%; the number of transactions grew even faster, up 43%, with the total expected to exceed 1 million transactions in 2026.

The total volume of crypto remittances from Western countries to Sub-Saharan Africa continues to rise

North America hosts a large number of Nigerian, Ghanaian, and Ethiopian expatriates, making it the largest source of crypto remittances, amounting to $645 million. The Australia-New Zealand region has the fastest growth, with remittance volume increasing from $48 million to $143 million, nearly tripling; Western Europe shows moderate growth, rising from $79 million to $100 million.

The data indicates that crypto remittances are becoming a channel for expatriates to send funds to Sub-Saharan Africa, with the sources of remittances continuously expanding.

In addition to direct remittances, cryptocurrencies are also expected to serve expatriate investments. Gillian Darko from Yellowcard.io suggested that blockchain can open new avenues for expatriate investment, improving financing and asset distribution, allowing local African businesses and assets to connect with overseas capital.

Expatriate Distribution Determines Crypto Remittance Flow

The scale and structure of expatriates can explain the distribution of crypto remittance sources.

During the statistical period, the scale of crypto remittances from North America and the Australia-New Zealand region was significantly higher than expected based on their population proportions; Western Europe was notably lower. Among the countries analyzed, 64% of immigrants born in Sub-Saharan Africa settled in Western Europe, yet Western Europe contributed only 10% of crypto remittances. France is a typical example: the number of Sub-Saharan African immigrants there is close to that in the U.S., but France's outflow of crypto remittances was only $5.4 million, compared to $223 million from the U.S.

The scale of crypto remittances is strongly correlated with the number of local African expatriates

In terms of per capita outflow, Canada ranks first: the amount of crypto remittances per Sub-Saharan African immigrant rose from $586 to $736; the U.S. per capita increased to $143; while Western Europe's per capita only rose from $14.5 to $17.9.

Canadian immigrants have the highest average remittance amounts, while Western Europe remains low overall

The differences are the result of the economic conditions, policy environments, expatriate income levels, and the maturity of local crypto markets in the remittance source countries. Employment opportunities and social welfare can affect the amount of money expatriates can send; the level of crypto adoption determines whether people choose to use crypto remittances.

The high proportion of crypto remittances from North America is due to the large number of African immigrants there and the maturity of the crypto market. This also indicates that the relationship between immigrants and crypto remittances highly depends on the local environment of the immigrants' host countries.

South African Businesses Widely Accept Crypto Payments

Research has found that South Africa has developed a considerable crypto economy, with consumers and merchants directly using cryptocurrencies to purchase goods and services.

The research analyzed payment data directed at merchants within South Africa: transfers between wallets, with the recipient's transaction characteristics being merchant service payments. The statistical scope is broad, including long-term service contracts paid with crypto and consumers scanning to buy fast food. To exclude extreme large transaction data interference, a single transaction limit of $50,000 was set. This category includes formal merchants, P2P traders, and other sellers.

During the statistical period, the payment transaction scale for such merchants in South Africa reached $8.34 billion, with a continuous quarter-on-quarter increase. In the second quarter of 2026 (the last quarter of the statistical period), the amount of service transfers exceeded $1 billion compared to the third quarter of 2025 (the starting quarter of the statistics).

The growth rate of merchant payments even surpassed the rapid inflow of institutional crypto funds in South Africa, which was $1.29 billion during the same period.

The growth rate of service payments has already exceeded the inflow of institutional platform funds

The growth of merchant payments is based on the continuous improvement of South Africa's crypto payment infrastructure. In 2025, the mainstream scan-to-pay service Scan to Pay and the crypto platform MoneyBadger launched a cooperative payment solution, allowing consumers to use Bitcoin at over 600,000 offline stores. As of August 2026, this cooperation covers a large number of retail points.

MoneyBadger CEO Carel van Wyk stated that South African users are increasingly using cryptocurrencies for daily consumption both in stores and online. The company's payment data analysis for the second quarter of 2026 shows that half of the transaction amounts were below $13, and 87% were below $60; e-commerce transactions accounted for 48% of the total payment amount. "Combined with the repurchase data we have observed, this indicates that cryptocurrencies are becoming integrated into the daily consumption habits of local people."

South Africa: The Crypto Hub of Sub-Saharan Africa

South Africa has long been a gateway for international investment in Africa, with the Johannesburg Stock Exchange, a mature banking system, a complete industrial sector, and established stable trade links across Africa, supporting the flow of real capital throughout the continent. Chainalysis data shows that South Africa is also a hub for cross-border crypto fund flows in Africa.

To verify whether the flow of crypto funds from South Africa aligns with traditional trade relationships, the team compared South Africa's cross-border crypto payments with the flow of foreign direct investment (FDI): South Africa has long been a core source country for FDI within Africa.

The crypto funds flowing from South Africa to Nigeria, Kenya, the Democratic Republic of the Congo, Tanzania, Namibia, and Zimbabwe highly overlap with traditional FDI flows, indicating that the crypto funding channels and traditional investment channels have some overlap, relying on already established business and trade relationships.

The landscape of crypto service payments and investments from South Africa to the African region

However, the overlap is not entirely consistent. Botswana and Zambia receive a high volume of FDI from South Africa, but the crypto funds from South Africa are relatively low; Senegal and Cameroon are the opposite. This indicates that the flow of crypto funds is only partially related to traditional foreign investment.

Even if crypto funds do not completely follow FDI, the overlap in several core markets also proves that South Africa is becoming a hub for regional crypto commerce and transactions. This conclusion is mutually corroborated by the rapid growth of local merchant payments in South Africa: the weight of crypto in commercial activities in South Africa continues to rise.

However, South Africa's hub status may change in the future. In August 2026, the South African Treasury and the South African Reserve Bank (SARB) released a draft of the "Cross-Border Crypto Asset Guidelines," planning to incorporate crypto assets into the country's capital flow management framework. The draft originally stipulated that individuals could only transfer crypto assets abroad through authorized local service providers; enterprises were prohibited from transferring crypto assets across borders in both directions. The draft faced strong opposition, and the South African Reserve Bank recently stated that it is revising the new regulations to eliminate prior approval requirements.

Regardless of the final version, this set of rules will profoundly impact the cross-border flow of crypto assets for individuals and enterprises.

Nigeria: Rapid Rise of Local Crypto Services, Local Exchanges Lead Growth

Nigeria is the second-largest crypto economy in the region, with a market highly skewed towards crypto services. A large amount of funds flows to crypto platforms and various services, with Nigerian users transferring $25.2 billion to crypto service platforms during the statistical period, a 172% increase compared to four years ago, outpacing the regional average growth rate.

The inflow of service funds in Nigeria has outpaced other countries in Sub-Saharan Africa

Almost all of the increase comes from local exchanges, which contributed $4.13 billion to the increase, accounting for 92% of the total increase. Overall, local platforms received $6.22 billion in funds, making up half of the total inflow to centralized exchanges in Nigeria. The market share has undergone a significant shift: local exchanges accounted for 27% in 2025, compared to only 7% in 2022.

Changes in market share of local exchanges in Nigeria

This change stems from Nigeria's recent restrictive policies towards international exchanges. In 2024, regulatory authorities, concerned about the depreciation of the Naira and the potential for cryptocurrencies to exacerbate exchange rate volatility, temporarily restricted user access to international platforms such as Binance, Kraken, and Coinbase. Although the restrictions were temporary measures, there have been ongoing disagreements between regulators and leading international exchanges, resulting in fewer platforms where Nigerian users can trade Naira pairs, creating a development window for local exchanges.

The continuous improvement of the regulatory framework further boosts the local ecosystem. In July 2026, the Nigerian president signed an executive order for virtual asset coordination, led by the central bank, to establish a cross-departmental coordination committee to unify virtual asset regulation. Stablecoins are also included in the regulatory scope, and a controlled sandbox environment is set up to test new products. Looking ahead, the Nigerian SEC has already issued draft rules for the operation, custody, and market of virtual assets, requiring exchanges and custodians to meet higher capital requirements by June 2027.

This set of policies is expected to further strengthen Nigeria's local crypto ecosystem, providing local platforms with a clear regulatory framework and expanding service boundaries. However, the increase in capital and compliance costs will benefit well-capitalized large institutions, reshaping the competitive landscape.

P2P trading remains important in the Nigerian market, with Bitcoin accounting for a much higher proportion of small transfers than in other regions and the global average. During the statistical period, Bitcoin accounted for 92% of small wallet transfers under $10,000, totaling $923 million (out of a total of $1 billion); this proportion is only 22% in other regions of Sub-Saharan Africa.

Nigeria's small P2P transfers (under $10,000 per transaction) primarily use Bitcoin, showing a stark contrast with other countries in the region.

This indicates that in Nigeria, Bitcoin is the core medium for everyday peer-to-peer small transfers, unlike other markets that predominantly use stablecoins.

Overall, the Nigerian market is characterized by the continuous expansion of local exchange ecosystems on one hand, and a high reliance on Bitcoin for small P2P transactions on the other. Even as formal crypto services continue to develop, the local demand for crypto usage still stems from users' needs for direct and flexible value transfer. Understanding this unique usage habit is crucial for assessing the future direction of the Nigerian market as local services and regulations mature.

Outlook

In the coming year, the differentiated paths of crypto adoption in Sub-Saharan Africa are worth ongoing observation: South Africa's crypto market is increasingly leaning towards commercial payments, while Nigeria's market is characterized by P2P transactions and small Bitcoin transfers. Across the region, the demand for cross-border payment settlements continues to drive crypto adoption, with financial institutions gradually entering the space. Stablecoins are addressing issues of payment fragmentation and currency barriers.

The future trend will depend on multiple factors such as capital investment and user demand, with regulation being a decisive variable. Clear regulations can instill confidence in businesses, investors, and financial institutions to participate in crypto, accelerating its adoption. As Rob Downes from Absa CIB stated: "At this stage, regulation is undoubtedly the core driving factor for crypto development in Africa."

The key issue is whether the capital continuously flowing into the Sub-Saharan African crypto space can be transformed into regional financial connectivity and inclusive financial services. In the long run, the value of cryptocurrency in Africa will depend on its ability to consistently bring real benefits to individuals and businesses, moving beyond mere speculation and experimentation to become a genuinely functional part of the regional financial and commercial infrastructure.